ECommerce EBusiness B2B, B2C, C2C, C2B

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E-Commerce / E-Business(B2B, B2C, C2C, C2B)

• COMP1020 (Fall 2008)
• William K. Cheung

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e-Commerce

• Commerce
• Buying and selling products or services
• e-Commerce
• Buying and selling products and services
  electronically
• 4 models
• B2B (Business to Business)
• B2C (Business to Consumer)
• C2C (Consumer to Consumer)
• C2B (Consumer to Business)

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Exercise
B2B
B2C
C2C
C2B
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B2B

• Business to Business (B2B)
• when a business sells products and services to
  customers who are primarily other businesses
• typically a manufacturer-supplier relationship
• is where most of the money is (about 97)

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B2B What to trade?
Which companies will Parknshop trade with?
Paper supplier
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B2B What to trade?
What does Parknshop sell?
For sale
For own use
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B2B What to trade?

• Maintenance, repair, and operations (MRO)
  materials (indirect materials)
• materials necessary for running a company but do
  not relate to the companys primary business
  activities
• e.g. air-con maintenance, repair parts, office
  supplies, travel, shipping,

• Direct materials
• materials that are placed on the shelf for sale
  in retail environments
• or are used in production in a manufacturing
  company
• Relate directly to a companys primary business
  activities
• Quality, quantity, and delivery timing are
  important

For sale
For own use
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B2B How to trade?
Paper supplier
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B2B How to trade?
Maintenance, repair, and operations (MRO)
materials

• Direct materials

• Horizontal e-marketplace
• connects buyers and sellers
• across many industries
• All industries need office supplies, travel, and
  the like
• e.g. www.bigboxx.com

• Vertical e-marketplace
• connects buyers and sellers
• in a given industry
• Each industry has unique direct material needs
• e.g. www.covisint.com in the automotive
  industry
• conduct commerce in products and services
• platform for collaboration

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B2C

• Business to Consumer (B2C)
• when a business sells products and services to
  individuals
• Most consumers deal directly with a chosen
  business on the Internet
• Some through e-marketplaces like e-bay

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B2C How do you get to the company?
Want to order a bunch of flowers for your
girlfriend online?
WHERE to order?
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B2C How do you get to the company?

• i.e. How do companies attract us?
• Marketing Mix Tools
• set of marketing tools a company uses to pursue
  its marketing objectives in reaching and
  attracting potential customers
• Registering with search engines
• Online ads
• Viral marketing
• Affiliate programs

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B2C How do you get to the company?

• How do companies attract customers?
• Registering with search engines
• Some search engines will list your site for free
• Most popular search engines charge a fee
• For an additional fee, your site can appear at
  the top portion of a search list

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B2C How do you get to the company?

• How do companies attract customers?
• Online ads (banner ads)
• small advertisements that appear as a part of the
  site

• Two variations are
• Pop-up ad small Web page advertisement that
  appears on your screen outside the current Web
  site
• Pop-under ad pop-up ad you do not see until you
  close your current browser window

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B2C How do you get to the company?

• How do companies attract customers?
• Viral marketing
• encourages users of a product or service supplied
  by a B2C business to encourage friends to join in
  as well
• e.g. www.bluemountain.com
• Provides a link so that the recipient can send an
  e-card back to the sender

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B2C How do you get to the company?
Shopping happily on amazon.com?

• How do companies attract customers?
• Affiliate programs
• arrangement between two e-commerce sites that
  directs viewers from one site to another
• If viewers buy at the second site, the second
  site pays a small fee to the first site (usually
  a percentage of the sale)

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B2C What you buy? Why you buy?
Which items do you prefer to buy them online?
Which you dont?
Source http//www.flickr.com/photos/valette/89179
6199/
Source www.canon.com.hk
Source www.chevignon-hk.com
Source http//www.flickr.com/photos/zootourist/31
7465572/
Source http//www.nike.com.hk/
Source http//www.w3sh.com/archives/2005/03/gagne
z_la_50000.html
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B2C What you buy? Why you buy?
Why do you prefer buying these things online?
Convenient
Can be down- loaded
Can be customized
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B2C What you buy? Why you buy?

• Specialty
• Higher priced
• Purchased less frequently
• e.g. stereos, computers

• Convenience
• Lower priced
• Purchased frequently
• e.g. common food items, household products
• Commoditylike
• Same no matter where you purchase it
• Price and ease of ordering are important
• e.g. books, music, movies
• Digital
• Purchased and delivered over the Internet
• Best product type for B2C e-commerce
• e.g. music, software
• Customization
• Customers can tailor make their own products
• e.g music, computers

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B2C How to pay?

• Credit Cards
• name
• credit card number
• expiry date
• does not require the
• card holders signature!

• Financial cybermediary
• Internet-based company that makes it easy for one
  person to pay another person or organization over
  the Internet
• e.g. PayPal (www.paypal.com)
• Create an account with personal, credit card and
  banking information
• To pay money
• Go to the PayPal site
• Enter the amount
• Enter information of the recipient

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C2C

• Consumer-to-consumer
• Individuals selling and buying directly with each
  other via a Web site
• Mostly in form of auctions
• Two main forms of transactions
• Face-to-face
• Buyers pay to bank sellers mail the items ?
  trustworthy?
• Exchange
• e.g. www.tradeduck.com

Source http//oneredpaperclip.blogspot.com/2006/0
7/503-main-street.html
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C2B

• Consumer-to-Business
• Consumers (individuals) specify their needs to
  companies and the companies offer products to
  them
• Possible?
• You specify your expertise and your expectations
  (by posting your resume online). Some company
  identifies you and offers you a job
• Reverse auction
• You specify your needs
• Companies compete to obtain business
• e.g. http//www.priceline.com/

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Topic 4 E-Business

• HSBC visit - Oct 28, 2008 230-515pm
  (tentatively)
• No presentation ?
• The report submission will be one week after the
  visit.
• The table of contents is to be defined by you
  this time.
• The focus of your report is free as far as it is
  related to what you have learned during the
  visit. I think what you can grasp during the
  visit will be limited and I suppose you need also
  do some web search afterwards.

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One Possibility

• E.g., HSBC e-banking services
• What are the new opportunities due to the use of
  e-banking services?
• What are the service categories for individual
  and business?
• What are the threats of e-banking services and
  what are the possible technical solutions?
• Can you look at e-banking services from the
  perspectives of different business models
  discussed in this lecture?
• Another focus could be issues around the data
  center